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2026 Supreme(Online)(Kar) 26651

THE HIGH COURT OF KARNATAKA
D K Singh, T.M.Nadaf, JJ
Mahabeer Mallaraj Urs – Appellant
Versus
V Srinivasa – Respondent
REGULAR FIRST APPEAL NO. 9 OF 2014



Advocates:
For the Appellants/Petitioners: T.Suryanarayana, Prashanth Murthy S G
For the Respondents: Lakshminarayana, Pratham N., L. Anusha

In a suit for specific performance, where time is expressly made the essence of a contract, the purchaser's failure to perform within the stipulated period, combined with a lack of proven readiness and willingness to fulfill financial obligations, precludes the grant of discretionary specific performance relief.

Headnote:(A) Specific Relief Act, 1963 - Sections 16(c) and 20 - Code of Civil Procedure, 1908 - Section 96, Order XLI Rule 1 - Specific performance - Readiness and willingness - Time as essence of contract - Where a contract contains an unequivocal time-essence clause and the party seeking relief fails to perform obligations within the stipulated period, the court's discretion to grant specific performance should not be exercised merely because a suit is filed within the limitation period. (Paras 52, 53, 54, 60)

(B) Contract Law - Implied obligations - Duty of parties - A term can only be implied to give efficacy to an intended transaction based on the presumed intention of the parties; it cannot be used to rewrite the contract or shift the burden of default. (Paras 35, 62)

Facts of the case:
The plaintiffs entered into an agreement to purchase agricultural properties for a specified consideration, with a fixed timeline for payment of the balance amount, explicitly stating that time was the essence of the contract upon penalty of termination and forfeiture of the advance amount. The plaintiffs failed to make payment by the deadline and subsequently ignored a notice of availability to complete the transaction. The suit for specific performance was filed years later, alleging failure by the vendor to perform implied duties, such as surveying the property and segregating revenue records.

Findings of Court:
The court found that the plaintiffs failed to prove their readiness and willingness to perform their part of the contract as required by law. The contentions regarding the requirement for survey sketches and record mutations were deemed afterthoughts, as no such demand was made by the plaintiffs prior to the expiry of the deadline. The court held that the trial judge misconstrued the terms of the agreement and failed to apply the principles governing the discretionary relief of specific performance.

Issues: Whether the time was the essence of the contract and whether the plaintiffs demonstrated sufficient readiness and willingness to perform their contractual obligations within the stipulated timeframe.

Ratio Decidendi: Where an agreement expressly stipulates time as the essence of the contract, the failure of the purchaser to perform within that period, despite being afforded an opportunity, disqualifies them from seeking specific performance, and the courts cannot ignore these stipulated deadlines or the conduct of the parties during the intervening period.

Result: Appeal allowed; decree set aside; suit dismissed.

Table of Content
1. summary of factual background regarding the sale agreement dispute. (Para 3 , 4 , 5)
2. contentions of the defendant regarding time as essence and breach by plaintiffs. (Para 6 , 7 , 8)
3. appraisal of trial court findings on vendor's obligation to provide survey sketches and clear title. (Para 13 , 14 , 21 , 22 , 23 , 24 , 25)
4. analysis of time as the essence of a contract. (Para 17 , 30 , 52 , 53 , 54 , 55 , 56)
5. proof of readiness and willingness required for specific performance. (Para 19 , 31 , 32 , 33 , 58 , 59 , 60 , 61 , 62)
6. guidelines on admissibility of additional evidence and post-trial amendments in appeal. (Para 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47 , 48)
7. final court decision setting aside the decree and dismissing the suit. (Para 63 , 64 , 65)

THIS RFA IS FILED UNDER SECTION 96 OF CPC, AGAINST THE JUDGMENT AND DECREE DATED 10.10.2013 PASSED IN O.S.NO.297/2008 ON THE FILE OF PRINCIPAL SENIOR CIVIL JUDGE AND CJM, RAMANAGARA, DECREEING THE SUIT FILED FOR SPECIFIC PERFORMANCE OF CONTRACT.

THIS APPEAL HAVING BEEN HEARD AND RESERVED FOR JUDGMENT ON 22.04.2026, COMING ON FOR PRONOUNCEMENT THIS DAY, HON'BLE MR. JUSTICE D K SINGH PRONOUNCED THE FOLLOWING:

CORAM: HON'BLE MR. JUSTICE D K SINGH

and

HON'BLE MR. JUSTICE T.M.NADAF

CAV JUDGMENT

(PER: HON'BLE MR. JUSTICE D K SINGH)

I. PREFACE:

The present regular first appeal has been filed by the appellant/defendant under Section 96 read with Order XLI Rule 1 of the Code of Civil Procedure 1908 (hereinafter referred to as 'the CPC') impugning the judgment and decree dated 10.10.2013 passed by the Principal Senior Civil Judge and CJM, Ramanagara, in O.S.No.297/2008 instituted by the plaintiffs/ respondents herein seeking specific performance of the Agreement of Sale dated 17.09.2005, in respect of the suit schedule properties, by receiving the balance sale consideration of Rs.50,41,875/- (Rupees Fifty Lakhs Forty One Thousand Eight Hundred and Seventy Five Only).

2. Parties are referred to as per the ranking before the Trial Court for the sake of convenience.

II. FACTS OF THE CASE:

3. The case of the plaintiffs before the trial Court in sum and substance was that the appellant/defendant was the owner and possessor of agricultural lands situated at Nidagal, Aralalsandra Village, Kasaba Hobli, Kanakapura Taluk, formerly Bangalore Rural District, presently Ramanagara District, totally ad measuring 34 acres 21 guntas comprised of nine survey numbers (herein after referred to as 'the suit schedule properties'). The defendant having got absolute saleable right over the suit schedule properties, offered to sell the suit schedule properties in favour of plaintiffs and the plaintiffs after verifying the documents agreed to purchase the suit schedule properties for consideration of a sum of Rs.60,41,875/-. On 17.09.2005, plaintiffs and the defendant entered into registered Agreement of Sale (Ex.P2) and on the date of the agreement, the defendant received a sum of Rs.10,00,000/- (Rupees Ten Lakhs Only) as advance amount and balance sale consideration of Rs.50,41,875/- (Rupees Fifty Lakhs Forty One Thousand Eight Hundred and Seventy Five Only) was to be paid at the time of execution of the registered sale deed in favour of the defendant i.e. on or before 15.11.2005.

4. The defendant was residing in Mumbai, whereas the properties were situated in Kanakapura Taluk. The defendant was required to get the suit schedule properties measured through Taluk surveyor and survey sketch prepared, to be submitted before the Sub Registrar for registration of the sale deed. The survey sketch was mandatory requirement as per the Government of Karnataka Circular bearing No.76/2001-2002 dated 10.01.2005. The defendant after execution of Ex.P2 went back to Mumbai and never turned up to contact the plaintiffs to measure the suit schedule properties and also to prepare the survey sketch. Portion of the suit schedule properties was being encroached by the neighbours. Though it was mentio

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